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December 22, 2009

‘Town and gown’ partnership boosts small-business development in central Flint


By ANN RICHARDS

To see Flint, Michigan’s long-neglected downtown begin to make a comeback is like “getting a knockout in the 10th round,” Clark Tibbits says.

“It proves what people already know in their hearts -- Flint’s a great place, a great city.”

Although the journey has been long and sometimes bumpy, Flint appears to have assembled all the strategic elements needed for an impressive downtown revitalization, says Tibbits, a Flint-area native once described by the local newspaper as an “old hippie with a Harvard MBA.”

Key to maintaining positive momentum, he says, is strengthening existing small businesses and developing new business.

Downtown Flint
The streets of downtown Flint overflow with classic cars and foot traffic at the summer "Back to the Bricks" festival.
“Small businesses put pedestrians on the sidewalk and life back in the city,” he said.

To that end, Tibbits is working with Joel Rash, director of the University of Michigan-Flint’s Launch program, to assist downtown Flint’s small business community through “Feet on the Street,” a multiyear program initiated in 2009.

The program, designed to stimulate the ongoing recovery, matches local small-business owners with expertise available through UM-Flint that delivers customized technical assistance and access to capital through a revolving microloan fund.

“Our first-phase targets are the 60 storefront enterprises in downtown Flint, many that have real potential to become destination businesses,” Tibbits said.

The entrepreneurship program is one of several administered by Launch, a component of UM-Flint’s Office of University Outreach, created to link “town and gown” through thoughtful partnerships between the urban campus and its surrounding community. The Mott Foundation provided initial funding for University Outreach and currently provides $225,000 in multiyear support for the office’s small-business development initiatives.

In recent years, with the opening of two residence halls and several loft-style residential developments, Flint has begun to build a permanent downtown population.

“In 2010, when Riverfront Residence Hall and Durant Hotel renovations are finished, there will be about 1,000 people living downtown,” Rash said. “That’s a village.”

That’s also good news for entrepreneurs interested in providing service for this growing population, says Tibbits, who believes this slower approach to urban redevelopment is the key to keeping downtowns viable and profitable.

During the first phase of “Feet on the Street,” each cooperating small business receives an individual needs assessment. Participants then are grouped with similar businesses and are offered 10 biweekly seminars on topics that are relevant to them. Some business owners also are paired with a mentor -- a community volunteer with significant business management experience.

Each business completing the program is eligible to pursue financing of up to $7,500 through Launch’s microloan program. Loans are designed to address specific problems, and each application must include a clear set of identifiable results, Rash says. Loans are repayable to the fund, assuring growth and additional capital for future business owners.

“It proves what people already know in their hearts -- Flint’s a great place, a great city.”

“Feet on the Street” initially will work with established business owners, says Tibbits, explaining that it is easier to build up existing businesses than recruit new ones.

Tracey Whelpley, who opened The Lunch Studio eight years ago as a “healthy alternative” to fast food for downtown workers, appreciates the opportunity to step back and reassess her business through the objective lens of “Feet on the Street.”

“It offers a fresh pair of eyes that helps me identify ways I can make small, inexpensive changes that make the restaurant more attractive to customers,” she said.

“As a business owner, I get so involved in daily scheduling, food preparation, the equipment, and the shopping that I sometimes lose sight of how this place looks from the sidewalk and how it appeals to people.

“Joel and Clark have helped me think about what I do best and how I can maintain my niche in the downtown business mix.”

Tibbits, who now lives part time in Asheville, North Carolina, witnessed first-hand the power of what he refers to as an “organic” approach when he became involved in downtown Asheville’s resurrection in the early 1990s.

About 10 years later, Tibbits returned to Flint and began working with several private investors and local organizations receiving Mott support to determine if the Asheville revitalization process might be adapted for use in Flint.

“There’s no question that people were dubious about Flint’s prospects,” Tibbits said. “But I reminded them that when we started in Asheville, the downtown was an ocean of concrete and abandoned buildings. If Asheville could do it, I felt Flint could, too.”

Unfortunately, the recent U.S. financial and economic crises -- which dealt a particularly devastating blow to Flint and the automotive manufacturing industry in and around the city -- seriously curtailed local entrepreneurial activity.

Joel Rash
Joel Rash
“Now, more than ever, people who have small businesses or want to start one need support,” said Rash, dubbed by Tibbits as “a classic shoestring entrepreneur.”

In the mid-1980s, following a two-year stint working in New York City, Rash founded Local 432, a popular downtown club for aspiring Flint musicians. During that period, he also moved into the central city and bought his first commercial building. Since then, Rash has been involved in a number of commercial and nonprofit ventures downtown, taking over the Launch program after joining the UM-Flint staff in 2007.

Like Tibbits, Rash believes that small business development is essential to a vibrant downtown and the success of larger, more visible redevelopment projects. 

“A lot of very small things eventually add up,” he said.

“This time, we’ve been fortunate that some of the downtown’s larger projects were well-timed, set and funded before the economy declined. Fortunately for Flint, downtowns are hot right now. All the trends -- walking to work, proximity to cool arts activities and restaurants -- are in its favor.”

The low cost of renting or buying downtown real estate means the cost of entry for new entrepreneurs is lower. And although the retail sector is still rebuilding, the central city already experiences a steady stream of traffic, thanks to college students, residence halls, government offices, banks and other offices that operate there.

“There’s nothing accidental about a well-thought-out business,” Rash continued, noting that “Feet on the Street” is designed to help business owners find their place in downtown’s specialized market and build pedestrian interest by sharpening and refining their image.

“In turn, UM-Flint benefits as well. Our students are looking for real-life experience in the business world, and our faculty is looking for research projects. ‘Feet on the Street’ provides that, along with opportunities for service, internships and sometimes, paying jobs.

“We are a downtown campus, and anything UM-Flint can do to support a vibrant, livable city ultimately helps the university.

“If the university wants to be sustainable and successful, we need a strong and successful downtown.”